§ Mr. Litterickasked the Secretary of State for Social Services what were his Department's forecasts of the relative 435W movements of prices and earnings, respectively, for the 12 month period up to November 1977; what were the actual relative movements of prices and earnings, respectively, during the 12 months up to November 1977; and what is his Department's estimate of the relative movements of prices and earnings for the 12 months up to November 1978.
§ Mr. OrmeIn the Financial Statement and Budget Report for 1977–78, which my right hon. Friend the Chancellor of the Exchequer laid before the House in March 1977, the Government's forecast of the movement in the retail price index from the fourth quarter of 1976 to the fourth quarter of 1977 was given as 13 per cent. The actual movement in the retail price index over this period was 13 per cent. The Financial Statement and Budget Report for 1978–79 forecasts a movement in prices between the fourth quarter of 1977 and the fourth quarter of 1978 of 7 per cent.
It is not the practice of the Government to publish forecasts of earnings. However, as my right hon. Friend said following his statement on 12th April on the uprating of social security benefits, we are confident that a pensions increase of 11.4 per cent. will cover the rise in earnings from November 1977 to November 1978.